Capital Bank was formed by Capital Bank Financial Corp. (formerly North American Financial Holdings, Inc.), a bank holding company incorporated in the state of Delaware in 2009. Capital Bank Financial Corp.’s objective is to create a regional banking franchise in the southeastern United States through organic growth and acquisitions of other banks, including failed, underperforming and undercapitalized banks. Beginning in December 2009, Capital Bank Financial Corp. raised approximately $900 million to make acquisitions through a series of private placements of its common stock. Since then, Capital Bank Financial Corp. has acquired six community banks. The acquisition of a seventh depository institution owned by Southern Community Financial Corporation was completed in the fourth quarter of 2012.

As of October 1, 2012, we operate 165 branches in Florida, North Carolina, South Carolina, Tennessee and Virginia. Through our branches, we offer a wide range of commercial and consumer loans and deposit products, as well as ancillary financial services.

Capital Bank Financial Corp.’s banking operations commenced on July 16, 2010, when we purchased approximately $1.2 billion of assets and assumed approximately $960.1 million of deposits of three failed banks from the Federal Deposit Insurance Corporation (FDIC). In connection with these acquisitions, Capital Bank Financial Corp. entered into loss sharing agreements with the FDIC covering approximately $796.1 million of outstanding loan balances and real estate of the banks that we acquired. Under the loss sharing agreements, the FDIC agreed to absorb 80 percent of all future credit losses and workout expenses associated with these assets.

On September 30, 2010, Capital Bank Financial Corp. invested approximately $175.0 million in TIB Financial Corp., a publicly held financial services company with total assets of approximately $1.7 billion and 28 branches operating under the name TIB Bank in the Florida Keys, South Miami-Dade County and southwest Florida.

Four months later, on January 28, 2011, Capital Bank Financial Corp. invested approximately $181.1 million in Capital Bank Corporation, a publicly held financial services company with approximately $1.7 billion in assets and 32 branches operating under the name Capital Bank in central and western North Carolina.

On July 11, 2011, we consolidated the underwriting, risk and pricing functions of each of our acquired institutions and combined the five institutions under a single information processing system. In order to unify and strengthen our identity, the banks merged under the Capital Bank brand coinciding with the system integration.

Later in the year, on September 7, 2011, Capital Bank Financial Corp. invested approximately $217.0 million in Green Bankshares, Inc., a publicly held financial services company having total assets of approximately $2.3 billion and operating 65 branches under the name GreenBank in Tennessee, Virginia and North Carolina. GreenBank transitioned to the Capital Bank brand in February 2012.

On March 27, 2012, Capital Bank Financial Corp. announced that it has signed a definitive agreement to acquire 100% of the stock of Southern Community Financial Corporation, a publicly held financial services company with approximately $1.5 billion in assets and 22 branches operating under the name Southern Community Bank & Trust in Winston-Salem, the Piedmont Triad and other North Carolina markets. Southern Community Bank and Trust transitioned to the Capital Bank brand in November 2012